Ex-Post Project Evaluation 2013: Package I-3

(India, Sri Lanka, Bangladesh)

December 2014

JAPAN INTERNATIONAL COOPERATION AGENCY

IC NET LIMITED

EV

JR

14-11

Preface

Ex-post evaluation of ODA projects has been in place since 1975 and since then the coverage of

evaluation has expanded. Japans ODA charter revised in 2003 shows Japans commitment to

ODA evaluation, clearly stating under the section Enhancement of Evaluation that in order to

measure, analyze and objectively evaluate the outcome of ODA, third-party evaluations

conducted by experts will be enhanced.

This volume shows the results of the ex-post evaluation of ODA Loan projects that were mainly

completed in fiscal year 2011, and Technical Cooperation projects and Grant Aid projects, most

of which project cost exceeds 1 billion JPY, that were mainly completed in fiscal year 2010. The

ex-post evaluation was entrusted to external evaluators to ensure objective analysis of the

projects effects and to draw lessons and recommendations to be utilized in similar projects.

The lessons and recommendations drawn from these evaluations will be shared with JICAs

stakeholders in order to improve the quality of ODA projects.

Lastly, deep appreciation is given to those who have cooperated and supported the creation of

this volume of evaluations.

December 2014

Toshitsugu Uesawa

Vice President

Japan International Cooperation Agency (JICA)

Disclaimer

This volume of evaluations, the English translation of the original Japanese version, shows the

result of objective ex-post evaluations made by external evaluators. The views and

recommendations herein do not necessarily reflect the official views and opinions of JICA.

JICA is not responsible for the accuracy of English translation, and the Japanese version shall

prevail in the event of any inconsistency with the English version.

Minor amendments may be made when the contents of this volume is posted on JICAs website.

JICAs comments may be added at the end of each report when the views held by the operations

departments do not match those of the external evaluator.

No part of this report may be copied or reprinted without the consent of JICA.

1

India

Ex-Post Evaluation of Japanese ODA Loan Project

Chhattisgarh Sericulture Project1

External Evaluator: Ryujiro Sasao, IC Net Limited

0. Summary

This project aimed to increase the production of tasar silk2 in the State of Chhattisgarh

through the development of the sericulture infrastructure and the provision of technical guidance

to sericulture farmers, thereby contributing to employment creation and poverty reduction for

the poor (especially women).

Because the implementation of this project is sufficiently consistent with the Indian

Governments development plan, the target sites development needs and Japans aid policy, its

relevance is high. Silkworm feed trees were planted as planned initially. Regarding the initially

estimated impacts, such as employment creation and an improvement in the standard of living

of the poor, although each of the production of seeds3, cocoons, silk yarn and spun yarn are

lower than initially planned, many poor women are able to work in sericulture and their

standard of living is improving. Therefore, it can be judged that the effectiveness and the impact

are fair. The efficiency is also fair, because the project costs were within the plan, while the

project period was longer than planned. Although the operation and maintenance of this project

is stable in terms of organization and personnel, there are problems in the technical and financial

aspects. Therefore, the sustainability of the effects produced by this project is fair.

In light of the above, this project is evaluated to be partially satisfactory.

1. Project Description

Project Location Silkworm Seed Station Established

under The Project

1 Although the title of this project was "Madhya Pradesh Sericulture Project at first, the region that includes the site

covered by this project separated from the State of Madhya Pradesh and became independent as the State of

Chhattisgarh in December 2000, the title was changed accordingly. 2 Four types of silkworm for sericulture exist in India: tasar, mulberry, muga, and eri. Tasar silkworms eat the leaves

of trees such as Terminalia tomentosa and Terminalia arjura, and are reared outdoors. 3 This means silkworm eggs.

Project site (Chhattisgarh State)

India

Pakistan

Nepal

China

Bangladesh

Myanmar

2

1.1 Background

Sericulture was introduced into India during the prehistoric age. Recently, it has drawn

attention as a rural household industry contributing to employment creation and poverty

reduction, and the Indian Government has strived to develop it. The production of raw silk

sharply increased from about 2,300 tons in 1970 to about 14,000 tons in 1995, which accounted

for 13% of the worlds total production (99,000 tons) (according to the statistics in 1994)4. In

the meantime, India received much development assistance to increase the production and

improve the quality. With the assistance of the World Bank and others, India carried out the

Karnakata Sericulture Project (1980), the Tasar Sericulture Project (1981), which covered

several states, and the National Sericulture Project (1989). Japan also has given assistance to

India for a long time. Japanese experts have given technical guidance since the 1960s, and Japan

gave projecttype technical cooperation to the Central Silk Boards laboratory in the State of

Karnataka in carrying out its plan to develop bivoltine sericulture technology since fiscal year

(FY) 19915.

The former State of Madhya Pradesh, where the target site of this project is located, is one

of the poorest states in India. In FY1991, 60.1% of the state population was below the poverty

line6 (28.9% for the whole of India)

7. The state economy is based on monoculture rice

cultivation, and there are hardly any industries that can absorb additional manpower. In this

situation, the sericulture industry, which includes tasar sericulture, has great importance. The

production of raw silk from tasar silkworms was 43 tons in FY1994, the second largest in

India8.

1.2 Project Outline

In the seven districts of Bilaspur, Janjgir, Korba, Raigarh, Jashpur, Surguja and Korea of the

State of Chhattisgarh9, this project aims to expand the production of tasar silk through the

development of the sericulture infrastructure and the provision of technical guidance to

sericulture farmers10

, thereby contributing to employment creation and improvement in the

standard of living of the poor.

4 Source: JICA materials for appraisal. 5 Bivoltine sericulture means sericulture of a silkworm that has two broods per year. 6 In FY1993, the poverty line was an income of 2,747 rupees per person. 7 Source: JICA materials for appraisal. 8 Source: JICA materials for appraisal. 9 When administrative districts were revised in 1998, Bilaspur, Raigarh, and Surguja, the target three districts of this

project at the time of the appraisal, were divided into seven districts of Bilaspur, Janjgir, Korba, Raigarh, Jashpur,

Surguja, and Korea. There was no change in the project site. 10 This project initially included consideration of the feasibility of mulberry sericulture (for details, see the section

on Efficiency).

3

Loan Approved Amount/

Disbursed Amount

2,212 million yen / 1,205 million yen

Exchange of Notes Date/

Loan Agreement Signing Date October 1997 / December 1997

Terms and Conditions

Interest Rate 2.3%

Repayment Period:

(Grace Period:)

30 years

(10 years)

Conditions for

Procurement General untied

Borrower/

Executing Agency (ies)

President of India/

Chhattisgarh Sericulture Department

Final Disbursement Date February 2007

Main Consultant

(Over 100 million yen)

Nippon Koei (Japan)

Feasibility Studies, etc.

Agriculture Finance Corporation Ltd., Bombay: F/S ,

1993

JICA: Special Assistance for Project Formation

(SAPROF) for the Madhya Pradesh and Manipur

Sericulture Projects, 1996

Related Projects

(Japanese ODA loan)

Manipur Sericulture Project (1997)

(Technical cooperation)

Project for Promotion of the Popularization of

Practical Bivoltine Sericulture Technology in India

(1997 - 2002)

Strengthening the Extension System for Bivoltine

Sericulture in India (2002 - 2007)

(Other organizations projects)

World Bank: Kartanaka Sericulture Project

World Bank and Swiss Agency for Development and

Cooperation: National Sericulture Project

Swiss Agency for Development and Cooperation:

Interstate Tasar Project

* All these projects were carried out in other states.

4

2. Outline of the Evaluation Study

2.1 External Evaluator

Ryujiro Sasao (IC Net Limited)

2.2 Duration of Evaluation Study

Duration of the Study: August 2013 December 2014

Duration of the Field Study: January 26 February 1, 2014; May 5 May 18, 2014

2.3 Constraints during the Evaluation Study

In the State of Chhattisgarh, the External Evaluator could not basically enter the project site

for security reasons. As a result, the local consultant familiar with the situation in the state and

sericulture carried out a survey on the beneficiaries and inspection of the facilities under the

supervision of the External Evaluator, who then carried out an evaluation based on the

information.

3. Results of the Evaluation (Overall Rating: C11

)

3.1 Relevance (Rating: 12)

3.1.1 Relevance to the Development Plan of India

At the time of the appraisal (in 1994), India was the second highest producing country after

China for the production of raw silk with a share of 13% of the world total production13

. With

rapid economic growth, however, the demand for silk sharply increased and domestic

production could not keep up with the increase in demand, so that India imported about 4,000

tons of raw silk every year as the warp for weaving. Against this background, India placed

importance on the development of sericulture mainly to meet domestic demand.

In the Eighth Five-Year Plan (19921996), besides the food crop production, the Indian

Government mentioned sericulture as an agricultural industry that can increase incomes and

employment in areas with rainfed agriculture and poor areas, in particular, those for the

small-scale farmers.

At the time of the ex-post evaluation, the Twelfth Five-Year Plan (20122017) states that the

annual production of silk should increase to 32,000 tons by 2017, assuming that it would

increase by 7.14% every year14

. To achieve this target, it is necessary to organize farmers

associations to create a multiplier effect between Research and Development/technical transfer

and the promotion/production processes of the companies. In addition, in the 2014 annual plan,

11 A: Highly satisfactory; B: Satisfactory; C: Partially satisfactory; D: Unsatisfactory. 12 : High; Fair; Low. 13 India produced 14,579 tons of raw silk in 1994. 14 According to the Central Silk Boards 2013 material entitled The Sericulture Industry in India, the provisional

production of raw silk in 2011 was 23,060 tons.

5

the Chhattisgarh Department of Sericulture specified three objectives: employment creation

through cocoon production and reeling/spinning; the supply of silk to local silk textile

manufacturers; and meeting the demand for silk in India and abroad.

As described above, the Indian Government has continued to place importance on the

promotion of sericulture in its development plans since the ex-ante evaluation. Therefore, this

project is highly relevant to the development plan.

3.1.2 Relevance to the Development Needs of India

At the time of the appraisal, in the target seven districts in the State of Chhattisgarh, there

were few industries other than those based on a single crop of rice, and the average poverty

rate15

was 75%. In addition, Schedule Caste and Schedule Tribes16

accounted for about a half

of the total population. Most of the households below the poverty line belonged to the Schedule

Caste and Schedule Tribes. Therefore, it was highly necessary to provide the jobs for the poor

people in the districts which enable them to be independent in a sustainable manner. Sericulture

is particularly suitable as a means to achieve poverty reduction, because it enables the farmers to

gain higher incomes with small investment, compared to other agricultural activities. In addition,

it is regarded to be suitable for women because it mainly require delicate and detailed operations.

At the time of the ex-post evaluation, the State of Chhattisgarh is one of the poorest states in

India. Therefore, there is a great need for economic development on behalf of the poor17

.

It was confirmed beforehand that, in addition to such clear development needs, there is

demand for silk yarn, a precondition for the feasibility of this project. Moreover, it has been

confirmed since then that this demand has continued to remain high. According to the Indian

Governments statistical information, the production of raw silk from tasar silkworms in the

State of Chhattisgarh increased 2.1 times between 2004 and 201218

. In India as a whole, it

increased 5.4 times and imports of raw silk account for about a half of the domestic production

of all types of raw silk19

. Because trends in production and imports correspond to the demand, it

can be inferred that the demand for tasar silk, a precondition for this project, was certain to

exist.

Therefore, at the time of both the ex-ante evaluation and the ex-post evaluation, the

development need for sericulture was high.

15 The ratio of population that belongs to families with annual income less than 11,000 rupee (FY 1994). 16 The Scheduled Castes are the castes authorized to be protected under the Constitution of India. The Scheduled

Tribes are the indigenous people recognized under the Constitution of India. Reservation systems for the seats in the

national and state assemblies, education, etc., exist on behalf of both the Scheduled Castes and Scheduled Tribes. 17 According to statistics in FY20112012, the ratio of poor people to the population of the State of Chhattisgarh is

39.93%, which is higher than any other state in India (Source: Press Note on Poverty Estimates, 201112, July

2013, Planning Commission). 18 It increased from 145.2 tons in 2004 to 298.6 tons in 2012 (Source: Chhattisgarh Department of Sericulture). 19 It increased from 322 tons in 2004 to 1,729 tons in 2012 (Source: Central Silk Board).

6

3.1.3 Relevance to Japans ODA Policy

According to Japans policy for ODA to India established in 1995, poverty reduction is

one of the priority fields together with economic infrastructure development and

environment conservation. One of the priority subfields of poverty reduction is agricultural

and rural development, including agricultural infrastructure development. Since this project,

which contributes to poverty reduction through agricultural development, is consistent with the

important issues specified in Japans policy for ODA to India, it is highly relevant to Japans

ODA policy.

This project has been highly relevant to the countrys development plan, the target areas

development needs, as well as Japans ODA policy. Therefore its relevance is high.

3.2 Effectiveness20

(Rating: )

3.2.1 Quantitative Effects (Operation and Effect Indicators)

Although, at the time of the appraisal, clear operation and effect indicators had not been set

for this project, the outcome expected under this project is expansion of the production of tasar

silk. With regard to this outcome, it was judged that it is appropriate to evaluate it using the

indicators related to the production of tasar silk that have been specified in the revised Detailed

Project Report (hereinafter referred to as DPR)21

. Table 1 shows the targets and results of the

indicators. The following are the achievement rates of the initial target values of the main

outcome indicators:

Production of tasar silkworm seeds: 38% Production of cocoons: 17% Production of silk yarn and spun yarn: 49%

20 Sub-rating for Effectiveness is to be put with the consideration of the Impact. 21 After the beginning of this project, project management consultant engaged in the project prepared a DPR in May

1999. The DPR was revised in November 2000.

7

Table 1: Targets and Results of Indicators Related to Production of Tasar Silk

Item

Target*1

(2006:

scheduled

year of

project

completion)

Results Perfor

mance *3

2003

2009*3

(2 years

after project

completion)

2010 (3 years

after project

completion)

2011 (4 years

after project

completion)

2012 (5 years

after project

completion)

2013 (6 years

after project

completion)

1. Sericulture

(1)

Production

of cocoons

(000) *2

94,463 1,862 15,628 14,166 15,412 13,366 13,427 17%

2. Total

production of

seeds

(00,000)

27.33 0 10.32 12.82 11.75 13.59 12.06 38%

3. Process

after cocoon

production

(tons)

(1) Silk yarn 87.04 19.23 55.84 73.23 66.71 67.51 52.47

(2) Spun yarn 54.96 4.62 13.40 17.58 16.00 16.20 34.98

Total 142.00 23.85 69.24 90.81 82.71 83.71 87.45 49%*4

Note: *1. Source: revised DPR.

*2. The revised DPR calculated the production of cocoons, including the impact of this project on the existing

plantations. However, because data on the existing plantations is difficult to collect and is not so influential, the

figures are limited to new planting.

*3. According to the Economic Cash Flow specified in the revised DPR, it was assumed that the project effects would

be fully developed two years after the completion of the facilities. Therefore, the performance was calculated by

dividing the results of two years after the completion (2009) by the target.

*4. The target of 142 tons is a value for the entire project area. It means that consideration was given to not only the

reelers/spinners who use the machines installed under this project, but also those for traditional reelers/spinners (not

using the machines installed under this project). If the target is limited to the direct beneficiaries for the purpose of

the calculation of performance, the target and the result (2009) are 45 tons and 35 tons, respectively. In this case, the

performance is 78%. (The source for the target is the revised DPR, while the source for the result is the results of the

interviews with the executing agency.)

The following are comparisons between the plan and the results according to the basic

production processes of tasar sericulture (1. Planting of trees 2. Production of seeds 3.

Production of cocoons 4. Production of silk yarn and spun yarn):

1. Planting of trees: Trees have been planted on 4,000 hectares by 2003 as planned. However, of the 4,000 hectares of the planted area, only 2,600 hectares remained in

2013. The loss of 1,400 hectares was mainly due to the natural death of the feeding

trees and airborne ash deposition22

. It is inferred that 7080% of the lost trees were

due to natural death. The main reason for this is that the Department of Sericultures

22 According to an interview with the executing agency, the ash came from smoke emitted into the air from the

chimneys of the neighboring steel plants or coal thermal power plants. Because they seem to fulfill the emissions

standards in India, the executing agency has not made any special protest or proposal. As an alternative measure, the

executing agency has planted trees in 1,529 hectares for tasar sericulture in areas where it is difficult for the ash to

impact on these plants.

8

payment of maintenance expenses ended four years after the planting23

, however, the

sericulture farmers could not fully pay the maintenance expenses afterwards. As a

result, there was a shortage of money for fertilizers, and the necessary nourishment

was not given to the feeding trees. With regard to the remaining 2,600 hectares, the

quality and quantity of the feeding trees was also inadequate due to the lack of

nourishment.

2. Production of seeds: The planned amount of 2.73 million seeds consisted of 1.8 million seeds for this project and 930,000 seeds for other purposes. In reality (in 2009),

the production of seeds was only 1.03 million, which consisted of 570,000 for this

project and 460,000 for other purposes. Only 57,000 seeds were supplied for this

project because the number of seeds actually necessary for this project was far lower

than planned. The reason why the number of supplied seeds was lower than planned

was not because the seed stations production and supply capabilities were

insufficient.

3. Production of cocoons: In 2009, the production of cocoons was 15.63 million, only 17% of the planned amount of 94.46 million. The main reasons are as follows: 1) the

above-described decrease in the planting area of feeding trees for tasar silkworms; 2) a

decrease in the number of seeds as input; and 3) the underdevelopment of the

silkworms.

With regard to 2), although it was assumed that 450 seeds would be distributed per

hectare, the actual number of distributed seeds was about 200. With regard to 3),

although it was initially assumed that the production of cocoons would be 50 cocoons

per silkworm seed, the actual number was only 25, a half of the assumed number.

Moreover, 2) was caused by a decrease in demand for seeds because of a decrease in

the amount of feeding tree leaves and the immature sericulture skills of the farmers; 3)

was caused by not only the immature sericulture skills of the farmers, but also the

problematic quality of the feeding tree leaves. According to a sericulture expert, both

2) and 3) were caused by the poor maintenance of the planted trees and problematic

sericulture skills.

4. Production of silk yarn and spun yarn: Although the initial target was 142 tons, the production of silk yarn and spun yarn in the seven project districts was actually 69

tons in 2009. In terms of raw materials, it was estimated that 18 tons were made from

cocoons produced under this project, while 51 tons were made from cocoons produced

in other areas.

Given the number of reelers/spinners24

, their production level through the use of the

machinery provided under this project was estimated to be about 35 tons. Therefore,

23 Based on the preliminary analysis (which was carried out when the revised DPR was prepared), it was predicted

that if the number of cocoons were produced as planned, the income from this would make it possible for sericulture

farmers to pay maintenance expenses. According to the revised DPR, a micro-level simulation was carried out on

how each farmers income and expenditure levels would change if the Department of Sericulture paid maintenance

expenses for several years just after the completion of planting until the production become stable. However, the

incomes of the sericulture farmers do not seem to have increased as simulated, and confirmation as to whether the

farmers had the intention to pay maintenance expenses seemed insufficient. Concretely, according to the simulation,

the introduction of sericulture would increase each farmers income by about 11,000 rupees, from which the

additional cost of about 3,000 rupees for sericulture (mainly, expenses for fertilizers and pesticides) would be paid.

However, because the increment was only about 8,000 rupees per farmer, the farmers hardly paid even the fertilizer

expenses. According to an interview survey, one beneficiary farmer said that such a level of increment did not enable

them to pay fertilizer expenses (which would require an increment of about 20,000 rupees). 24 There are two types of spinning: reeling (weaving of yarn from normal cocoons) and spinning (weaving of yarn

from broken cocoons). We mean either reeler or spinner by reeler/spinner.

9

the production capacity of the machinery provided under this project25

seems to have

been sufficiently used.

In the production flow of sericulture, the causes for the differences between the initial plan

and the results can be summarized as follows:

Figure 1: Explanatory Chart of the Differences between the Initial plan and Results

in the Production Flow Source: Prepared by the External Evaluator

Note: *The result in 2013 is the planting area of 2,628 (ha) input of 200 seeds per unit hectare 25.5 (number of

produced cocoons per silkworm seed) = 13,427,000 (number of produced cocoons).

25 When the revised DPR was prepared, a theoretical value was calculated at 45 tons on the assumption that all the

beneficiaries (750 people) work for 300 days.

Initial plan Results* (2009)

4,000 ha 4,000 ha

(Maintenance) 2,852 ha

Seeds:

input of 450/ha Seeds:

input of 200/ha

Production of

cocoons per seed:

50 cocoons

Production of

cocoons per seed:

27.4 cocoons

(estimate)

94.5 million

cocoons 15.6 million

cocoons

(90 million + adjustment) Procured from

other areas

18 tons + 51 tons

(Total: 69 tons) 107 tons

(Including existing trees;

the total target is 142 tons)

Production

flow

Planting of

trees

Production/

input of seeds

Cocoon

production

Production of

silk yarn and

spun yarn

Causes for the differences

Shortage of nourishment due to insufficient money for fertilizers and death of feeding trees due to the impact of airborne ash deposition

Decrease in the quantity of feeding tree leaves

Immature sericulture skills of the farmers

Qualitative deterioration in the feeding tree leaves

Immature sericulture skills of the farmers

Because the operation rate of the machinery introduced under this project is high, it is highly possible that production through the use of the machinery existing at the beginning of this project was actually much lower than planned.

10

3.2.2 Qualitative Effects26

Although, according to the results of the questionnaire survey on the beneficiaries carried

out during this ex-post evaluation27

, the farmers gave a relatively high evaluation on the

condition of leaves of the feeding trees for the silkworms28

, the condition of the leaves is not

good because of the lack of nourishment, and the number of silkworms per leaf area is low,

according to an Indian expert on sericulture. However, the quality of the cocoons produced by

the farmers is high, and the average selling price is almost the same as the standard price for the

highest-quality cocoons in India29

. Almost all the farmers answered that the selling price reflects

the quality and is appropriate. Therefore, although there are problems in the quality of the

feeding trees during the intermediate processes of the production flow, the quality of the

cocoons is high as the final product.

The following summarizes an analysis of the emergence of outcomes according to

cause-effect logic:

26 Qualitative effects of this project other than statistical data were confirmed. Concretely, the quality of the products

and the feeding trees for the silkworm was confirmed. 27 During the nine days in late May 2014, five investigators, including a sericulture expert, carried out an interview

survey on the beneficiary farmers in the seven target districts to investigate the effectiveness, impact, and

sustainability of this project, applying random systematic sampling. The total number of samples was 211, consisting

of 136 sericulture households and 75 reelers/spinners. With regard to the category of sericulture households, 32

beneficiaries (all of whom are women) are absent and male farmers responded to the questionnaire in place of the

beneficiaries. The female respondents can be divided by age as follows: one woman in her 10s (1%); three women in

their 20s (3%); 28 women in their 30s (27%); 43 women in their 40s (41%); 17 women in their 50s (16%); 12 women

in their 60s and over (12%). Their average age is 44.9. Although all the reelers/spinners are also women, three

respondents were men (surrogate respondents). The female respondents can be divided by age as follows: two women

in their 10s (3%); 17 women in their 20s (24%); 31 women in their 30s (43%); 16 women in their 40s (22%); four

women in their 50s (6%); two women in their 60s and over (3%). Their average age is 35.4. 28 The number of respondents choosing Highly satisfactory, Satisfactory, Improvement needed and Very

problematic were 43, 85, 8 and 0 respectively. 29 Quality rank A (the other ranks are B, C, D and defective).

11

Figure 2: Analysis of the Emergence of Outcomes

3.3 Impact

3.3.1 Intended Impacts

The initially intended impact was the creation of employment and improvement of the

standard of living of the poor (especially, women).

With regard to the creation of employment, according to the executing agency, all the

farmers and reelers/spinners participating in this project were newcomers. Therefore,

employment was created for the number of beneficiaries involved (about 3,350)30

. The

qualifications for farmers covered by this project include the following: an income less than the

poverty line; no ownership of land; and that they are female. These farmers were selected as

30 Total of 2,600 new sericulture farmers and 750 new reelers/spinners.

Limited-time payment by

Dept. of Sericulture for

maintenance expenses

Insufficiency of absolute

amount of farmers income

from sericulture

Insufficient motivation

for maintenance

Insufficient skills of the farmers in the

maintenance of the feeding trees Insufficient payment of feeding tree maintenance

expenses (mainly fertilizer expenses)

Decrease in quality and quantity

of the feeding trees

Insufficient sericulture skills of the

farmers

Insufficient increase in the production of cocoons

Effect

Cause

Insufficient maintenance of the feeding trees

Insufficient increase in the production of

cocoons because of the insufficient sericulture

skills of the farmers and the lack of fertilizers

12

planned initially and the sites for planting trees for tasar sericulture were selected under certain

criteria31

.

Although the target number of tasar sericulture farmers in the project districts (all of them

were women) was 4,000, the actual number was 0 in 2000, 3,718 in 2001 and 4,984 in 2002

(peak year). Subsequently, the number gradually declined and was 2,604 in 2013 (see Appendix

1). Because the number of sericulture farmers should be basically one per hectare, the decrease

in the number of sericulture farmers reflects the above-mentioned decrease in the area of

planting trees. Although the area of planting decreased partially because the feeding trees died

due to ash deposition from neighboring steel plants and power plants, the death of the feeding

trees is mainly caused by the failure of the sericulture farmers to provide fertilizers or take the

necessary care of them. According to an interview with a sericulture expert who interviewed the

sericulture farmers and the executing agency, it can be inferred that the farmers who continued

to conduct sericulture can maintain the feeding trees because they have used pesticides, paid

some fertilizer expenses by managing to raise funds and take care of the feeding trees somewhat

carefully under the guidance of the Department of Sericulture.

Besides environmental factors, the reasons for the decline in the number of sericulture

farmers include the failure to give fertilizers or take necessary care of them as described

above. This seems to be because of the following: (1) the motivation for maintenance among the

farmers is weak because they do not own the land on which the feeding trees are grown; and (2)

the farmers awareness of the problems and basic skills required for sericulture could not be

developed fully because training for them at the first stage of this project was insufficient.

Therefore, the continuation of sericulture by the farmers requires the establishment of a

system for providing a certain amount of pesticides and fertilizer, promotion of understanding

by the farmers of the importance of the provision of pesticides and fertilizers, and the provision

of the basic technical guidance necessary for sericulture.

Although the current number of beneficiary sericulture farmers is about 60% of the initial

target, the number of sericulture farmers covered by this project has almost ceased to decline

since 2009. The number of sericulture farmers does not include the number of reelers/spinners.

The number of beneficiary reelers/spinners covered by this project is 750 (all of them are

women), which is in accordance with the plan specified in the revised DPR (achievement rate:

100%).

31 The criteria include accessibility from the house of the beneficiary farmers, flat plantation land, and a sufficient

amount of soil.

13

In regard to improvement of the standard of living of the poor, according to the results of

the questionnaire survey on the beneficiaries, the farmers covered by this project receive

benefits from this project, such as an increase in income32

and an improvement in their standard

of living, as shown in the following tables:

Table 2: Sericulture Farmers Change in the Standard of Living after Participation

in This Project

Item Highly

improved

Fairly

improved

No

change Worsened Total

No. of people 61 74 1 0 136

Ratio (%) 45 54 1 0 100

Table 3: Sericulture Farmers Concrete Items indicating an Improvement

in the Standard of Living *1

(Top Five Items)

Item No. of

people

Ratio

(%)

Purchase of more food 135 99

Receiving more medical services 129 95

Provision of better education to the children 89 65

Repair of the house 71 52

Savings 55 40

Note: **1. Multiple answers allowed.

As shown in the following tables, the results of the questionnaire survey on the beneficiaries

also indicates that the beneficiary reelers/spinners of this project received benefits, such as an

improvement in food consumption and the benefits of medical services:

Table 4: Reelers/Spinners Change in the Standard of Living after Participation

in This Project

Item Highly

improved

Fairly

improved

No

change Worsened

No

answer Total

No. of people 49 22 3 0 1 75

Ratio (%) 65 29 4 0 1 100

32 Information was collected through the questionnaire. Although the incomes of the farmers are generally on an

upward trend, the External Evaluator refrained from calculating the average income because there are clearly

abnormal values (including answer and interview mistakes) and because the units of the values are sometimes not

uniform.

14

Table 5: Reelers/Spinners Concrete Items indicating Improvement

in the Standard of Living *1

(Top Five Items)

Item No. of

people Ratio (%)

Purchase of more food 70 93

Receiving more medical services 70 93

Provision of better education to the children 49 65

Increase in entertainment expenses 42 56

Increase in the purchase of daily necessities 38 51

Note: *1. Multiple answers allowed.

3.3.2 Other Impacts

1. Impacts on the natural environment

Because negative impacts on the environment were not assumed at the time of the

appraisal, an environmental impact survey was not regarded as necessary. Moreover, it

can be considered that this project restored forest resources through tree planting,

thereby contributing to prevention of the degradation of forest vegetation and the

discharge of sediment in the rainy season.

2. Land Acquisition and Resettlement

Because the sites where tasar sericulture was planned are owned by the

Department of Forests, it was not necessary to acquire private land or resettle the

residents.

3. Unintended Positive/Negative Impact

At the time of the appraisal, the participation of women (consideration of gender)

was assumed as another impact of this project. The revised DPRs Section 6

Institutional and Social Development Plan has a heading entitled Involvement of

Women in the Project33

. Under this heading, importance is placed on the role of

self-help groups (hereinafter referred to as SHG). According to the executing agency,

womens group activities had the following effects: improvement in the sanitary

condition of homes through the development of peoples consciousness of public

health; development of peoples consciousness of nutrition; participation in health

services provided by the government (such as vaccination); and improvement of

womens status in their home.

33 This is virtually the same as the Action Plan for the Consideration of Women, which was supposed to be

prepared at the time of the appraisal.

15

According to the results of the questionnaire survey on the beneficiary sericulture

farmers, almost all the respondents (135 of 136) answered that womens social

standing improved. The following factors contributed to this improvement:34

Table 6: Factors Contributing to the Improvement of Womens Social Standing *1

Item No. of people Ratio (%)

Provision of a regular job and salary 132 97

Provision of work outside the home 101 74

Acquisition of self-confidence

through sericulture 95 70

Various kinds of training 46 34

Note: *1. Multiple answers allowed.

Moreover, according to investigators of the questionnaire surveys on the beneficiaries, some

women commented Although before I did not have self-confidence and could not talk with

strangers, lifting my face, now I can talk, lifting my face, because Im earning a regular income

from sericulture35

and contributing to the family budget and I have become able to talk with

my husband on an equal footing.

As described above, there are three types of indicators related to the production of tasar

cocoons. With regard to the rating of the project in terms of effectiveness, performance is 38%

for the production of seeds, 17% for the production of cocoons and 49% for the production of

silk yarn and spun yarn. Because each of the indicators is important for the production of tasar

silk36

, the average of the three indicators, which is 35%, is regarded as performance in terms of

the quantitative effect (which falls under Rating 37). On the other hand, from the viewpoint of

employment creation and poverty reduction, both of which are the ultimate objective and main

impacts of this project, the results of employment creation (the total number of new sericulture

farmers and reelers/spinners to whom equipment was newly provided) reached 70% of the

planned value38

. With regard to poverty reduction, almost all the respondents to the

questionnaire survey on the beneficiaries answered that their standard of living Highly

improved or Fairly improved. The ratio of those answering Highly improved is 45% for

sericulture farmers and 65% for reelers/spinners. With regard to poor women, the target group

of this project, almost all the respondents answered that womens social standing had improved.

34 According to the results of the questionnaire survey on spinners, 72 of the 75 respondents also answered that

womens social standing improved. 35 According to the results of an interview with the executing agency, if a woman of an agriculture household is

employed as a cleaner in a project district, she can earn about 42 rupees a day. On the other hand, if the income

earned from sericulture under this project is converted into a daily wage, it becomes about 180 rupees. 36 From the viewpoint of the actual inputs also, support is frequently given to activities related to the three indicators.

Therefore, it cannot be said that one of them can represent the whole. 37 This is evaluated as unsatisfactory. 38 The actual value (2,604 farmers + 750 spinners) planned value (4,000 farmers + 750 spinners) = 70.6%.

16

Taking into comprehensive consideration what has been described above, the effectiveness

and the impact are fair.

3.4 Efficiency (Rating: )

3.4.1 Project Outputs

The plan and results of the project outputs are as follows:

The table below shows the results concerning the facilities. Although some of the result

numbers are less than planned, they are not so different from the initially planned values. With

regard to the consulting services, all the initially planned services were carried out, except for

the detailed design for mulberry sericulture.

Table 7: Plan and Results of the Outputs

Item Facility

Initial target

(at the time of

appraisal *1

)

Revis

ed

DPR*2

Revise

d

target*3

Result*4

Reason for the change

1. Tasar silkworm facilities

1) Tasar Plantation

Tasar feeding

treesha 4,000 4,000 4,000 4,000 None

2) Infrastructure for sericulture

Grainage

(Mud House

& Pairing

Cage) (no.)

14 15 10 10

At the meeting in

February 2002, ECC

decided that the number

of facilities should be

reduced because the

Dept. of Sericultures

existing facilities could

be used.

P2 Station

(no.) 4 5 3 3 Same as above

P3 Station

(no.) 1 0 0

Because P3 station is

maintained by the

Central Silk Board and

therefore the

construction of stations

was not essential for

carrying out this project,

it was excluded from the

scope (although the

initial plan aimed to

establish the production

flow of silkworms under

this project, this change

does not seem especially

problematic).

17

Cocoon

godown for

each District

(no.)

3 3 3 3

Facilities were not

newly established as

initially planned; the

Dept. of Sericultures

existing facilities were

reconstructed.

Village

Cocoon

Storage (no.)

30 30 10 10

Because the Dept. of

Sericultures existing

facilities could be used,

the number of facilities

was reduced.

Multiend

Reeling

Center (no.)

2

(40 machines)

500

machi

nes

500

machin

es

500

machin

es

Although it was initially

planned that 20 reeling

machines would be

installed at two places,

the groups of reelers

were unable to secure

places where all the 20

machines could be

installed. To improve the

capacity to reel thread,

500 reeling machines

were distributed to 48

womens groups in

accordance with ECCs

guidelines.

Pedal Reeler

(no.) 150 250 250 250

The number of machines

was increased because

demand for the

production of silk yarn

increased when the

revised DPR was

prepared and, as a result,

it was necessary to

improve the spinning

capacity.

Field

Research and

Training

Center (no.)

1 1 1 1 None

Project office 1 1 0 0

It was decided that the

Dept. of Sericultures

existing facilities should

be used.

3) Equipment

Vehicles for

technology

transfer (no.)

4 8 8

Although it was initially

assumed that the project

office would have one

vehicle and each project

district would have one

vehicle, the number of

vehicles was increased

because the number of

18

project districts

increased from 3 to 7.

2. Consulting services

2-1.

Person-months

International

consultants

(person-mont

hs)

86 78 74 The total number of

person-months

decreased because some

of the initially planned

services were cancelled.

Domestic

consultants

(personmont

hs)

244 182 166

Technical

support,

clerical staff

(person-mont

hs)

300

According to the

executing agency, it was

initially planned that

staff members within the

Dept. of Sericulture

would be assigned to

this category. Because

there is no detailed

record of the staff

members operations

during the project

period, the actual value

cannot be calculated.

2-2. Operations Plan Result Reason for the change

1. Baseline survey and interviews with

the people concerned Carried out None

2. Review and preparation of the

overall development plan and DPR for

the planning of 4,000 ha of tasar and

3,000 ha of mulberry

Carried out None

3. Detailed design for the planting of

4,000 ha of tasar and 800 ha of

mulberry

The detailed

design for tasar

was carried out,

but that for

mulberry was not

carried out.

As described below in

the text

4. Assistance in bidding for the

planting of 4,000 ha of tasar and 800 ha

of mulberry

It was carried out

for tasar, but was

not carried out

for mulberry.

As described below in

the text

5. Supervision of planting of 4,000 ha

of tasar Carried out None

6. Technical guidance and training Carried out None Note: *1. December 1997.

*2. February 2007 (Because figures for the equipment (vehicles) were not written in the revised DPR, confirmation

was made by an interview with the executing agency).

*3. February 2002 (set at the ECC meeting).

*4. February 2007 (source: project completion report).

In this way, the quantities decreased concerning many items. This is mainly because the

Department of Sericultures existing facilities were used. According to the executing agency,

19

neither the decrease in the number of seed stations nor the decrease in the number of rural

silkworm warehouses had an adverse impact on this project. In contrast, to meet on-site demand,

the number of spinning machines increased from the initial target set when the appraisal was

carried out.

The plan (in accordance with the revised DPR) and results of the consulting service are as

shown in the table above. Although most of the items were carried out according to plan, neither

the detailed design for mulberry nor the supervision of the planting of the mulberry was carried

out. With regard to mulberry silkworms, E/S (engineering service) was planned to be carried out.

Although activities for the formation of central seedbeds, the experimental planting of 60 ha of

mulberry, and experimental breeding of mulberry silkworms were carried out to examine the

feasibility of mulberry sericulture, it was finally decided in September 2001 that the detailed

design for mulberry sericulture would not be carried out, under the agreement with JICA,

because it was agreed that mulberry sericulture is not suitable for the project districts

considering the discussions at the Empowered Committee of Chhattisgarh (hereinafter referred

to as ECC)39

, the agency for supervising this project40

. The executing agencys judgment that

the detailed design for mulberry silkworms should be discontinued seems reasonable also in

light of the weak financial condition of the farmers covered by the project.

Although the description above mainly concerns physical outputs, excluding the consulting

services described last, this project also places importance on the strengthening of the

capabilities and organization of people engaged in sericulture. Such non-physical outputs will

be summarized below.

During this project, training was planned and provided to the personnel of the Department

of Sericulture, NGOs and sericulture farmers. The trainings conducted for each type of

participant are as follows:

39 In this project, the relevant agencies were coordinated by ECC, which consists of principal secretaries of the

Department of Sericulture, the Department of Finance, the Department of Co-operatives, and the Department of

Forests. 40 The reasons are as follows:

A larger amount of investment in infrastructure is necessary for introducing mulberry sericulture than for introducing tasar sericulture. This is not realistic for poor farmers.

The nature of the soil in the State of Chhattisgarh is not suitable for feeding trees for mulberry silkworms.

Although irrigation facilities are necessary for mulberry sericulture, they have not been established in the State of Chhattisgarh.

20

1. Training for the Personnel of the Department of Sericulture

Table 8: Outline of the Training for Personnel of the Department of Sericulture

Training for the personnel of the Department of Sericulture was held from 1999 to

2000. Table 8 shows the subjects and lecturers. The table also shows the number of

participants. The participants were field officers who supervise the field staff members

directly engaged in the provision of guidance to sericulture farmers. According to an

executive of the executing agency, they were highly satisfied with the training. As a

result, the participants were able to use what they learned to carry out on-site

activities42

. Therefore, the training seems to have indirectly contributed to the

realization of the project effects through the provision of guidance to the farmers

(OJT) by the field staff members.

41 Lectures by consultants were conducted as a part of the consulting services (corresponding to Table 7, 2.

Consulting Services, 2-2. Operations, 6. Technical guidance and training). 42 There are no detailed records on the degree of satisfaction as in the case of a questionnaire survey of the

participants.

Training

subjects/lecturers Detail

Plan Results

No. of

participan

ts

Period

No. of

participan

ts

Period

(Subjects)

Tasar sericulture technology

Mulberry sericulture technology

Organization of farmers

Lecturers training

(Lecturers)

Staff members of public research

institutes

Consultants41

1. Overseas

training 8

2

weeks

Cancelled during the

process of the State of

Chhattisgarhs

separation and

independence

2. Domestic

training by

relevant

institutes in

India

60 1

month 60 Unknown

3. On-site

training 80 1 week

None (Judged

unnecessary)

21

2. Training for NGOs

Table 9: Outline of the Training for NGOs

Note: *1. NGO staff.

*2. NGOs local coordinators.

Training for NGOs was also held from 1999 to 2000. Table 9 shows the subjects,

the lecturers and the participants. According to an interview with an executive of the

executing agency, the participants were highly satisfied with the training. A concrete

effect of the training is the participants use of what they learned in the workshops to

provide guidance for the farmers, which contributed to the achievement of the project

purpose to some extent at the early stage of the project.

3. Training for sericulture farmers

Training was planned to be given to 4,175 silkworm farmers, 250 silkworm seed

farmers and 540 reelers/spinners for 45 days, 15 days and 60 days respectively.

However, because construction of the technical training center at which the training

was to be given was completed in September 2006, the final stage of the project period,

full-scale training was hardly given to the beneficiary farmers during the period.

Basically, only a two-day workshop was held at the early stage. The contents of the

workshop included a summary explanation of tasar sericulture (A two-page pamphlet

full of illustrations was used, because the beneficiary farmers cannot read or write

much.) and encouragement of the farmers to organize themselves. In addition to the

workshop, on-the-job instructions about actual sericulture activities were given by

staff members of the Department of Sericulture. They have been monitoring the

43 Lectures by consultants were conducted as a part of the consulting services (corresponding to Table 7, 2.

Consulting Services, 2-2. Operations, 6. Technical guidance and training).

Outline of the training Details

Plan Results

No. of

participants Period

No. of

participants Period

(Subjects)

Sericulture technology Organization of farmers Marketing Accounting Management of

co-operatives

(Lecturers)

Consultant43 Personnel of the

Sericulture Dept.

External resource person

1. Domestic

training by

relevant

institutes in

India

21 1

month 21

*1 Unknown

2. Onsite

training 60

2

weeks 60

*2 Unknown

22

farmers work, visiting their workplaces almost every day during the sericulture period.

At the time of the ex-post evaluation, however, the technical level of the beneficiary

farmers is still primitive. Therefore, it cannot be said that there was sufficient guidance

given to the beneficiary farmers44

.

In summary, although training was given to the personnel of the Department of Sericulture

and NGOs and has had some effects, fullscale training was not given to sericulture farmers,

resulting in a lack of appropriate sericulture skills.

3.4.2 Project Inputs

3.4.2.1 Project Cost

The planned and actual project costs are as follows:

Table 10: Project Cost (Currency unit: million)

Item

Planned cost (at the

time of appraisal) *1

Actual cost

*2

Rupee Yen Rupe

e

Yen

1-1.Tasar Plantation*3

207 705 181 485

1-2. Supporting Facilities 179 609 61 164

2.Procurement of Equipment 34 117 21 56

3.Land Acquisition 295 1,006 215 576

4.Department of Sericulture:

Recurrent Cost for Project

119 406 326 874

5.Contingency 83 284 29 78

6.Price Escalation 30 80

7.Consultancy services 182 622 121 324

8.Interest during construction 72 245 30 80

Total 1,171 3,995*4 1,014 2,718

*4

Note: *1. Conditions for the calculation are as follows (JICA materials for appraisal):

Date of the calculation: April 1997 Exchange rate: 1 rupee = 3.41 yen Contingency: 10.0% Price escalation: foreign currency, 2% per year: domestic currency, 8.6% per year *2. Sources: the actual costs in rupees were provided by the executing agency; those in yen were

calculated by the use of the average rate during the loan period (1 rupee = 2.68 yen).

*3. Concretely, labour cost (which accounts for about 50%), fertilizers, pesticides, etc.

*4. Figures may not match the total due to rounding off.

44 Although JICA carried out two technical cooperation projects, The Project for Promotion of the Popularization of

Practical Bivoltine Sericulture Technology in India and Strengthening the Extension System for Bivoltine

Sericulture in India, JICA could not use them for supporting the capability improvement of the staff of the

Department of Sericulture and the beneficiary farmers in this project. Although bivoltine sericulture technology was

applied for tasar in the project, the bivoltine sericulture technology in two technical cooperation projects on the above

is for mulberry, therefore it cannot be applied for tasar.

23

Comparing the planned cost at the time of the appraisal and the actual cost in terms of yen,

the actual cost (2,718 million yen) is lower than planned and only 68% of the planned cost

(3,995 million yen)45

. The reasons are as follows.

In terms of rupees, although there was an increase in the actual cost for the Department of

Sericultures administrative costs46

, the total actual cost (1,014 million rupees) was lower than

the initially planned total cost (1,171 million rupees) by 13% due to the following factors:

Decrease in the cost of establishing the infrastructure for tasar sericulture47

Decrease in the cost of consulting services48

Moreover, because the yen appreciated by about 21% from the time of the appraisal during

the implementation of the project, the ratio of the actual cost to the planned cost further

decreased in terms of yen.

3.4.2.2 Project Period

This project was scheduled for 88 months from December 1997, when the L/A (loan

agreement) was expected to be signed, to March 2005, which was the scheduled date of

completion49

. In reality, it took 111 months from December 1997 to February 2007. Thus the

actual period was longer than planned and 126% of the planned one.

The main reasons for the prolonged period are as follows:

In November 2000, the State of Chhattisgarh, in which the project site is located, was

separated and became independent from the State of Madhya Pradesh. After this, ECC was

established to supervise this project, and DPR, the detailed plan for this project, was approved

in February 2002. Because of this, various construction works, which was initially scheduled to

start in 2000 and 2001, actually started in 2002 and 2003. Because of a delay in the approval of

the detailed plan as a result of the separation and independence of the State of Chhattisgarh,

there was a delay in the construction work and training activities could not be carried out in

earnest, although there was no serious impact on planting activities in particular.

The construction work was delayed for six to eight months because of the above reason and

also of the following reasons. Because a hike in the prices for materials caused some successful

bidders to withdraw, it was necessary to hold bidding for some work again. The hiking of prices

also caused a delay in some constructors start of the construction. There was also a delay in the

supply of materials for roofs.

45 There was a minute increase or decrease in the infrastructure costs, which accounted for only a slight portion of

the project costs. In addition, some portions of the consulting services were excluded. However, neither seems to

have reached a level that required adjustment, especially in the calculation of the ratios. 46 The cost increased because it might have been underestimated and because commodity prices rose. 47 The cost was saved because existing facilities were more actively used than initially planned. 48 The cost decreased because consulting services (detailed design) related to mulberry sericulture was excluded. 49 The scheduled date of completion is defined as the date when all the project facilities are completed.

24

In this way, the project period was prolonged mainly because of external factors, such as

stagnant project activities during the process of the states independence and the hiking of prices

for materials.

3.4.3 Results of Calculations of Internal Rate of Return (Reference only)

Because the detailed process of the calculation of the economic internal rate of return

(EIRR) at the time of appraisal was unknown, the EIRR was recalculated for this ex-post

evaluation using the calculation method specified in the revised DPR50

.

Table 11: Results of the Calculation of the EIRR

The time of

calculation

At the time of the

appraisal (1997)

Recalculation at the

time of the ex-post

evaluation

1. Calculation method

(in local currency)

Costs: construction costs, material and

equipment procurement costs, consulting

costs, administrative costs, contingency,

maintenance costs, replanting/material and

equipment renewal costs

Benefits: Additional benefits from an increase

in cocoon production, additional benefits from

the processing of cocoons into raw silk and

silk products

Project life: 30 years

2. EIRR 15.9% Negative

The recalculated EIRR is negative and is far lower than the EIRR at the time of the appraisal

or the EIRR specified in the revised DPR. This is because, although the project cost was a little

lower than planned, the production of cocoons was only 17% of the target, and the benefits

greatly decreased.

Although the project cost was within the plan, the project period exceeded the plan.

Therefore, the efficiency of this project is fair.

3.5 Sustainability (Rating: )

3.5.1 Institutional Aspects of Operation and Maintenance

This project was carried out by the Chhattisgarh Department of Sericulture.

The project period can be divided into the start-up period and the production period. As

planned initially, the Department of Sericulture and the consultant played central roles in the

first half of the start-up period, while the Department of Sericulture, the sericulture

50 According to the revised DPR, the EIRR is calculated at 17.4%. Because no data on the benefits related to the

portion of existing trees were provided from the executing agency, the data at the time of the planning were used as

they were.

25

co-operatives, the federation of co-operatives and NGOs supported the planting of the feeding

trees and the production of cocoons and silk yarn in the second half of the start-up period and

the production period51

. Sericulture farmers formed the Sericulture Farmers Group (SFG) and

the Self-Help Group (SHG), both of which are carrying out activities. Under this project,

relevant agencies were coordinated by ECC, which consists of principal secretaries of the

Department of Sericulture, the Department of Finance, the Department of Co-operatives and the

Department of Forests.

Since the completion of this project, sericulture has been carried out as follows:

Figure 3: Relationships among Sericulture-related Organizations

The role of each agency can be described in detail as follows:

1) Department of Sericulture

The total number of personnel of the Department of Sericulture is about 1,00052

. Under the

supervision of the Joint Director of the Headquarters, the Deputy Director or the Assistant

Director is in charge of the 16 districts in the state, and guidance is given to sericulture farmers

51 NGOs mainly gave guidance to the beneficiary farmers during the start-up period of this project, but were not

carrying out activities at the time of the ex-post evaluation. 52 As of May 2014.

Federation of co-operatives

Co-operative: PSCS

Department of Sericulture

Sericulture farmers: SFG

Sericulture farmers: SHG

Each farmer

Supervision

Technical guidance Advice Cocoon trading

26

in each of the districts. Guidance is directly given to the farmers by field staff members of the

Department of Sericulture53

. They monitor the farmers work during the sericulture season,

visiting fields almost every day. Because the number of field staff members is about 90 per

district, each field officer is in charge of six farmers. Therefore, the number of them is sufficient.

The Department of Sericulture also supports farmers in repairing spinning machines. In addition,

the technical training center under the Department provides training and workshops for the

personnel of the Department of Sericulture and sericulture farmers. The number of participants

in training and workshops has been increasing year by year and was 1,278 in FY201213.

2) SFG

This is a group for the rearing of silkworms and the production of cocoons. One group is

established in one site (the total number of sites is 155). The number of members of each SFG is

about 17 on average.

3) SHG

This is a group for savings and other economic activities (for pooling a fixed amount of

money and mutually lending money when needed). Because, in light of its economic activities,

it is desirable to minimize the size of the organization, an SFG has been divided into two or

three SHGs. Both the SFGs and SHGs have remained active even after the end of this project.

4) Co-operative

Aggregates of a number of SFGs form Primary Sericulture Co-operative Societies

(hereinafter referred to as PSCS). PSCS are not organizations newly established under this

project, but existing organizations in which each SFG has participated in each district. Each

farmer sells cocoons to a PSCS, which then sells them to reelers/spinners in the district. The

PSCS also give advice to farmers about methods of producing high-grade cocoons and provide

small loans to farmers for the purchase of pesticides.

5) Federation of co-operatives

The federation of co-operatives is officially called the Chhattisgarh Khadi and Village

Industries Board. This organizations activities are limited to the supervision of the

co-operatives under its control.

The following is a comparison between the sericulture system under this project and those in

other regions of India:

53 They are called field men or operatives.

27

Table 12: Sericulture Systems in India

Region

Characteristics

Ownership of

plantations

Responsibility for

maintenance of the

planted trees

Technical guidance to

farmers

1. This project Sericulture farmers

have only the right to

use the land.

Responsibility

belongs to the farmers

(the Department of

Sericulture gives

financial support only

for the initial four

years).

Provided by the

Department of

Sericulture.

2. Other sericulture

in Chhattisgarh

Sericulture farmers do

not have any official

right to use the land,

but are allowed to rear

silkworms.

Responsibility

belongs to the

Department of

Sericulture.

Somewhat

compulsory guidance

is provided by the

Department of

Sericulture.

3. Other main tasar sericulture states

1) Madhya Pradesh Same as 2 above

2) Bihar, Jharkhand Plantations: belongs

to the farmers.

Responsibility for

maintenance of the

planted trees: belongs

to the farmers.

Provided by the

Department of

Sericulture with the

participation of local

NGOs.

As shown in the table above, usually sericulture farmers who own plantations are

responsible for maintaining them. If sericulture farmers do not own the plantations, the

Department of Sericulture maintains them. This project is exceptional because farmers do not

have ownership of plantations, but are responsible for their maintenance. According to

interviews about examples in the main tasar sericulture states, the average income for sericulture

farmers in the States of Bihar and Jharkhand is clearly higher than that in the project districts.

The sericulture farmers in those states can use some of their income for purchasing fertilizers.

Next, with regard to the system for maintaining the sericulture facilities, a person in charge

of maintenance has been appointed for each facility. The working directive/job chart has

specified the missions and duties of the Department of Sericultures officers in charge of

maintenance (for details of the maintenance system, see Appendix 2). According to the

executing agency, the number of people in charge of the maintenance of each facility has

reached a level that is sufficient to carry out the necessary operations. In addition, according to

the results of inspections by an Indian sericulture expert, there are a sufficient number of people

in charge of maintenance. Although the Department of Sericulture rotates the officers in charge

of maintenance every three to five years, the number of them is stable. With regard to the

management of each facility, there are simple guidelines, and there is no problem in the

procurement of spare parts.

28

With regard to the organizational aspects, as shown in Figure 3 and the description thereafter,

the roles of the agencies related to sericulture farmers are clear and the necessary functions have

been performed. However, this projects method whereby farmers do not have the ownership of

the plantations, but are responsible for the maintenance seems to lack fairness somewhat and

makes it difficult for the farmers to develop their motivation to maintain the planted trees.

3.5.2 Technical Aspects of Operation and Maintenance

According to the executing agency, training and OJT at the Central Silk Board and the Field

Research and Training Center have made it possible to maintain the sericulture facilities using

appropriate techniques. Inspections by sericulture expert in four districts have also confirmed

that sericulture facilities have been maintained by appropriate techniques. There is no special

problem in the actual management of the facilities. However, the skills of sericulture farmers are

still primitive. For example, although it is usual that at the initial stage of silkworm rearing, the

trees should be covered by nets to prevent the larvae from being eaten by birds or from being

washed off by the rainwater, only about 20% of the farmers seem to take such measures54

.

While co-operatives give advice about the quality of the cocoons, the federation of

co-operatives does not give technical guidance.

Therefore, there are some technical issues to be improved and it is necessary to strengthen

the guidance to sericulture farmers.

3.5.3 Financial Aspects of Operation and Maintenance

According to the executing agency, the budgets for the maintenance of the facilities are as

follows55

:

54 This inference was made by the sericulture expert who inspected the districts, accompanying the beneficiary

survey. 55 Because the maintenance costs limited to the facilities established under the project were not calculated after the

completion of this project, it was difficult to extract information on the cost of maintaining the project facilities. The

maintenance costs for sericulture facilities for the whole state have been on an upward trend for the past three years.

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Table 13: Budgets for the Maintenance of the Facilities

Facilities

Four-grade

evaluation of

budget sufficiency*

Measures in case of insufficient budget

Tasar Plantation 1 There is room for the use of government

support measures.

Grainage (Mud House &

Pairing Cage) (10)

3 Not applicable

P2 Station (3) 3 Not applicable

Cocoon godown for each

District (3)

3 Not applicable

Village Cocoon Storage

(10)

3 Not applicable

CSTRI Reeling machines

(500)

3 Not applicable

Pedal Reeler (250) 3 Not applicable

Field Research and

Training Center (1)

4 Not applicable

Note: * 4: Sufficient to maintain the facilities; 3: Minimum required level for maintenance; 2: Not very sufficient;

1: Not sufficient at all.

Although there is no special problem in the budgets for the maintenance of the facilities, the

budget for maintaining the feeding trees for tasar silkworms is clearly insufficient. Therefore, it

is necessary to secure the budget.

The financial condition of each organization is as follows:

1) Farmers

According to an interview with the executing agency, a typical beneficiary farmer earns an

annual income of about 29,000 rupees. Of this amount, about 8,000 rupees are from sericulture

(this can be said to be the net income increment produced by this project). All the income

(29,000 rupees) is said to be used for consumption. As described above, farmers are responsible

for the maintenance of trees planted for tasar sericulture. However, farmers cannot afford to

maintain them. In reality, benefits are paid to farmers for four years during the planting period,

and the farmers were required to save 25% of these benefits. The saved money becomes a fund

for the maintenance of the plantations and the interest is used for maintenance. The amount of

annual interest is about 700 rupees per hectare, which can be used only for purchasing pesticides.

As farmers neither have enough money nor land ownership, they lack the motivation to

maintain the plantations and have not purchased sufficient fertilizers to maintain them.

2) Co-operative (PSCS)

There is no problem in particular, but the co-operatives cannot financially afford to support

maintaining the planted trees.

30

With regard to budgets for the maintenance of the feeding trees for tasar sericulture,

availability of the governments support measures for two schemes to plant trees for sericulture

was confirmed during the study for this ex-post evaluation. One of them is called MG NREGA

(Mahatma Gandhi National Rural Employment Guarantee Act), utilizing which the government

can give financial support for wages for the replanting of trees during the first three years. The

other scheme is the Central Silk Boards CDP (Catalytic Development Program). This financial

support program is applied not only to the replanting of trees, but also to the maintenance of

existing trees. Although the executing agency of this project has already applied for MG

NREGA and replanted trees on 1,359 hectares, it will be possible to apply for CDP to support

the maintenance of trees planted under this project.

The entire financial condition can be summarized as follows: although the maintenance of

sericulture facilities has no problem in particular, the financial conditions require remedies that

enable sericulture farmers to appropriately maintain the plantations for tasar sericulture.

3.5.4 Current Status of Operation and Maintenance

A four-grade evaluation56

of the operation of the facilities (eight types) was conducted by

the executing agency. Because all are evaluated as 2nd or higher, there is no serious problem. In

addition, appropriate maintenance of the sericulture facilities was confirmed through the

above-described inspection of four districts by the sericulture expert. With regard to the feeding

trees for tasar silkworms, more than six years have already passed after the completion of this

project, and the area of feeding trees has ceased to reduce and is on a stable trend, but the

quality of the feeding trees is still problematic due to the insufficient use of fertilizers.

Under such circumstances, with regard to the three preconditions for the maintenance, the

organization and personnel of the sericulture facilities are stable. The number of sericulture

farmers is also stable, although the number has not reached the peak level. With regard to

techniques, the sericulture techniques of the farmers in particular have room for improvement.

However, this problem is not so serious as to threaten the sustainability, because the production

of cocoons has been generally stable for the six years since the completion of this project. With

regard to the financial aspects, although the maintenance of the sericulture facilities has no

problem in particular, the farmers lack of funds for maintaining their plantations (especially

funds for purchasing fertilizers) is problematic. However, in spite of the lack of funds for

maintaining them, the sericulture business conditions for the farmers are not so unfavorable as

to threaten sustainability in the near future57

.

56 The four grades are 4: Highly satisfactory, 3: Satisfactory, 2: Not especially problematic and 1:

Problematic. 57 According to the results of the questionnaire survey on the beneficiaries, 105 respondents (77%) answered that

tasar sericulture will be Sustainable in the future, followed by 25 respondents answering Dont know (18%) and

six respondents answering Not sustainable (4%).

31

Therefore, although the operation and maintenance of the facilities established under this

project are stable in terms of the organizational and personnel aspects, they have minor

problems with regard to the technical and financial aspects. In addition, although the facilities

have been maintained appropriately and the area of feeding trees for tasar silkworms has ceased

to decline and has been stable, the quality of the feeding trees is still problematic. The

sustainability of the effects produced by this project is fair.

4. Conclusion, Lessons Learned and Recommendations

4.1 Conclusion

Because the implementation of this project is sufficiently consistent with the Indian

Governments development plan, the target sites development needs and Japans aid policy, its

relevance is high. Silkworm feed trees were planted as planned initially. Regarding the initially

estimated impacts, such as employment creation and an improvement in the standard of living

of the poor, although each of the production of seeds, cocoons, silk yarn and spun yarn are

lower than initially planned, many poor women are able to work in sericulture and their

standard of living is improving. Therefore, it can be judged that the effectiveness and the impact

are fair. The efficiency is also fair, because the project costs were within the plan, while the

project period was longer than planned. Although the operation and maintenance of this project

is stable in terms of organization and personnel, there are problems in the technical and financial

aspects. Therefore, the sustainability of the effects produced by this project is fair.

In light of the above, this project is evaluated to be partially satisfactory.

4.2 Recommendations

4.2.1 Recommendations to the Executing Agency

Figure 2 shows the causes for the insufficient emergence of outcomes under this project.

Because the provision of financial support to the farmers for planting ended when the

production of cocoons had still not reached a sufficient level, and because the weak motivation

of the farmers to carry out maintenance due to their insufficient incomes and their lack of

ownership of the planting sites, maintenance budgets became insufficient, resulting in a

decrease in the quality and quantity of the feeding trees. The inadequate skills of the farmers

due to a lack of training also resulted in sluggish growth in the production of cocoons. In states

other than project ones, however, there are cases where sericulture farmers own the plantations,

earning higher incomes and managing to purchase fertilizers. Moreover, according to the

sericulture expert, an increase in the investment per hectare by only 2,000 rupees will have a

considerable effect. Thus, the potential for the expansion of production seems great in the

project site. It is therefore desirable to improve technical guidance to the farmers by introducing

32

government financial support for maintenance, such as CDP, standardizing the minimum

necessary maintenance operations in the form of a checklist and thoroughly teaching how to use

the checklist through training or on-the-job instruction.

4.2.2 Recommendations to JICA

JICA should encourage the Department of Sericulture to provide government support for the

maintenance budget.

4.3 Lessons Learned

1) Necessity for the establishment of effective maintenance systems at a planning stage

The reasons for an insufficient maintenance budget for feeding trees in this project are

farmers insufficient incomes owing to sluggish growth of cocoon production, weak

motivation of the farmers due to their lack of ownership of the planting sites, inadequate skills

of the farmers, as well as the Department of Sericulture gave financial support for the

maintenance of feeding trees for only limited time.

Therefore, at the stage of preparing the detailed plan in the future projects in sericulture

sector, it is necessary to consider how the parties concerned should share responsibilities over a

certain period, taking into consideration the situation of plantation and land ownership,

capability of cost shouldering, technical guidance and also cases in other states.

2) Necessity of training of new sericulture farmers

At the early stage of this project, the initially assumed full-scale training was not given to

the farmers. Only two-day workshops and OJT after tree planting were conducted. Therefore,

newcomer sericulture farmers only partially carried out the basic operations needed for

sericulture. Because such insufficient technical guidance seems to have impeded the realization

of the effects, it will be necessary to strengthen the training of farmers (especially at the early

stage) when a similar project is carried out in the future.

33

Appendix 1

The following table shows the trends in the number of beneficiary sericulture farmers (tasar)

and the number of sericulture farmers in the whole of the state (tasar):

Table: Trends in the Number of Tasar Sericulture Farmers

Year

Number of tasar

sericulture farmers

in the project site

Number of tasar

sericulture farmers in

the State of Chhattisgarh

Ratio of

sericulture

farmers in the

project site to the

state total

2000 0 4,965 0%

2001 3,718 6,811 55%

2002 4,984 8,430 59%

2003 1,582 7,832 20%

2004 3,047 9,098 33%

2005 2,735 9,124 30%

2006 3,320 9,709 34%

2007 3,503 11,604 30%

2008 3,103 8,057 39%

2009 2,754 7,434 37%

2010 2,567 6,881 37%

2011 2,278 8,179 28%

2012 2,606 8,729 30%

2013 2,604 n.a. n.a.

Source: Chhattisgarh Department of Sericulture

According to the executing agency, the number of sericulture farmers changed frequently

and has not become stable because of the following (the numbers of farmers in the table are not

annual averages, but numbers counted at specific points in time):

People left their homes to work in factories.

Withdrawal from sericulture because of the weather. (If the